A series of major acquisitions is further concentrating market share among the biggest companies in the physical security market, an IHS Markit report has revealed.
The top 15 security equipment and services companies have grown their share of the global market from 21.4% in 2014 to 23.1 percent in 2015, according to the latest Physical Security Equipment and Services Report.
Given that this estimate doesn’t even account for several high profile deals announced in 2016, HIS Markit expects the trend to gather pace this year.
Notable deals this year include Tyco’s merger with Johnson Controls, the acquisition of Diebold’s North American security business by Securitas, the acquisition of ADT by Apollo Global Management and a merger of Protection 1 and ASG Security.
Low-cost Chinese brands have also continued to thrive. Hikvision and Dahua Technology in particular are growing much faster than the market average, both domestically and internationally.
Tyco International was the world’s largest supplier of security equipment and services in 2015, comprising 3.8% of the market, followed by ADT at 2.9% and Hikvision at 2.5%.
IHS market also reports that single-product suppliers are increasingly under threat from end-to-end solutions. Growing numbers of integrators are leveraging single-vendor solutions to cut installation costs and reorientate their business model towards more lucrative service and maintenance contracts.
Recognising this trend video surveillance giant Hikvision diversified into intruder alarms this year by acquiring British brand Pyronix.
The global equipment and services market was worth an estimated $123.67 billion in 2015.
The security equipment market consists of video surveillance, access control, intruder alarms, entrance control, consumer video surveillance, mobile video surveillance and body-worn cameras, and enterprise storage.
The services market consists of access control as a service (ACaaS), video surveillance as a service (VSaaS), remote monitoring services and security systems integration.
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